International Paper sells pulp and wood business
August 2, 2004 By Pulp & Paper Canada
International Paper has elected to sell the capital stock of its Weldwood of Canada, subsidiary to West Fraser Timb…
International Paper has elected to sell the capital stock of its Weldwood of Canada, subsidiary to West Fraser Timber Co., of Vancouver for approximately $1.26 billion. The all-cash transaction is still to be approved and is subject to completion of due diligence, however, it is expected the deal will close at the end of September.
International Paper anticipates the proceeds from the transaction will be in the neighborhood of $900 million U.S. after adjustments.
"The timing is right for the sale of Weldwood, given the very strong wood products markets," said International Paper chairman and CEO John Faraci. "This decision reflects choices that we believe will improve the focus of our portfolio, build stronger businesses and improve future profitability," he added.
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